SAN FRANCISCO (Wednesday, October 03, 2012)
More Bay Area Residents Poised to Save on their Commute with Pre-Tax Dollars
This week California Governor Jerry Brown signed into law a bill that paves the way for local Bay Area transportation authorities to require certain employers to offer commuter benefit programs that enable employees to pay for commuting expenses with pre-tax dollars.
The bill, SB 1339, allows the Metropolitan Transportation Commission and the Bay Area Air District to adopt an ordinance instituting mandatory regional commuter benefits beginning in 2013 for employers with 50 employees or more working within the Bay area. Commuter benefits offer employees the option to pay for transit, vanpooling or bicycling expenses with pre-tax dollars, which can lead to savings of hundreds of dollars throughout the year.
"Ensuring access to commuter benefits is smart public policy – and a much needed break for Bay Area commuters," said Dan Neuburger, President of WageWorks Commuter Services. "Commuter benefits save money for employers and employees, while improving our air quality and reducing road congestion."
In 2008, the city of San Francisco passed a similar ordinance that required employers with employees working in San Francisco and at least 20 employees nationwide to offer commuter benefits. A new ordinance would expand access to commuter benefits to include all 9 counties in the jurisdiction of the Metropolitan Transportation Commission, with a population of roughly 7.5 million people.
"With this important step, regional authorities are now poised to ensure Bay Area employees have access to this important cost saving tool," added Neuburger.
WageWorks (NYSE: WAGE) is a leader in administering Consumer-Directed Benefits (CDBs), which empower employees to save money on taxes while also providing corporate tax advantages for employers. WageWorks is solely dedicated to administering CDBs, including pre-tax spending accounts, such as Health Savings Accounts (HSAs), health and dependent care Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), as well as Commuter Benefit Services, including transit and parking programs, wellness programs, COBRA, and other employee benefits. WageWorks makes it easier to understand and take advantage of Consumer-Directed Benefits for 58,000 employers and approximately 4.5 million people. WageWorks is headquartered in San Mateo, California, with offices in major locations throughout the United States. For more information, visit www.wageworks.com.